ABB confirms gift to shareholders after sale to Hitachi
news-single-imgcaption” style=”width:240px;”>ABB previously announced the partial sale of Power Grids to Hitachi in December 2018. (Keystone)
The Japanese Hitachi took over 80.1% of ABB’s Electricity Networks division for $ 9.1 billion (8.62 billion francs at current prices). As promised by the Zurich group, part of the gain from the transaction will be paid to shareholders.
An amount between 7.6 and 7.8 billion will end up in the pockets of shareholders, ABB said on Wednesday. The Zurich giant intends to launch a share buyback program for 10% of the share capital after the publication of results in the second quarter. This concerns 180 million titles. The operation will end on the date of the next general meeting, March 25, 2021.
The sale of the Power Grids unit valued these businesses at $ 11 billion, for all of them. ABB will remain a 19.9% shareholder for at least three years.
A joint venture – Hitachi ABB – was created and started operations, with 36,000 employees and annual revenues of $ 10 billion. It is directed by Claudio Facchin and is present in 90 countries.
ABB previously announced the partial sale of Power Grids to Hitachi in December 2018. (AWP)